What is professional tax in simple words?

Professional tax is a tax that is levied by the state government and applies to income you earn through employment. You can often find the deduction for the same on your salary slip each month. Professional tax in India varies from state to state. The maximum amount of professional tax cannot exceed Rs. 2,500 annually.

What is professional tax and how is it calculated?

A professional tax is calculated on the basis of your salary and predetermined slabs. You can have to pay anything between ₹ 200 to ₹ 2500 a month.

What is professional tax and who should pay?

The professional tax is determined by the gross monthly income corresponding to the income slab, as per the state where you are employed. So, if your gross income every month is Rs. 30,000 and you are working in Maharashtra, you are liable to pay Rs. 200 every month except February.

What is professional tax in TCS?

What is professional tax? Professional tax is levied by particular Municipal Corporations and majority of the Indian states impose this duty. It is a source of revenue for the government. The maximum amount payable per year is INR 2,500 and in line with tax payer’s salary, there are predetermined slabs.

Can I claim professional tax?

In your income tax return, professional tax is allowed as a deduction from your salary income.

What is PT payslip?

When you look at your payslip or salary slip, along with the deduction column, you will notice a deduction marked as “PT”. PT or Professional Tax, as it is called, is a tax paid to the state government.

Can I get refund on professional tax?

You cannot get your professional tax back. But you can claim deduction of profession tax file filing your salary returns. There is generally no refund mechanism under professional tax. However, if the payment is made inadvertently then the professional tax act of the particular state shall mention the way to get it.

Can I avoid professional tax?

The following individuals are exempted to pay Professional Tax: Parents of children with permanent disability or mental disability. Members of the forces as defined in the Army Act, 1950, the Air Force Act, 1950 and the Navy Act, 1957 including members of auxiliary forces or reservists, serving in the state.

What is the income tax in India?

Jun. 29 – Income tax in India is a tax paid to the central government on personal income. It is the direct tax paid on income by an individual or a company/firm within a given financial year.

What is IRS tax professional?

Tax professionals are often hired by individuals when filing their tax returns. A tax professional may create strategies to ensure that her client pays the least amount of money possible in taxes. Tax professionals may also have the responsibility of keeping financial records for clients or an employer.

What is tax slab in India?

INTRODUCTION FOR SLABS. In India, income tax is levied on individual taxpayers on the basis of a slab system where different tax rates have been prescribed for different slabs and such tax rates keep increasing with an increase in the income slab.

What is a professional tax deduction?

– The taxpayer must claim the deduction only in the financial year in which the professional tax is actually paid to the government – The tax paid by the employer on behalf of the employee is also eligible for deduction. – Under Section 16 of the Income Tax Act there is no upper or lower limit on the deduction.